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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY 2nd Month Sugar Futures

NY sugar held the nerve yesterday as intraday trading caused futures to close at 17.82. %K/%D is neutral and is seen to converge back on the upside, and the MACD diff has fluctuated between the positive and negative territory, confirming market uncertainty around the price direction; this is confirmed by yesterday’s spinning top formation. To maintain positive momentum, prices need to close above 10 DMA at 17.96 and then target 18.17. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 17.62 level, the long-term support level. Buying pressure has been weak, and the indicators point to a continuation of lacklustre momentum. The break of resistance at 10 DMA could confirm the outlook for higher prices in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar edged higher yesterday as intraday trading caused futures to test appetite for prices above 520, and the market closed above at 525.20. Stochastics are rising, with %K/%D diverging on the upside, confirming positive momentum. The MACD diff is positive and flat, suggesting a lack of strong buying pressure. To maintain positive momentum, prices need to close above 100 DMA at 527.73 and then target 530.20 and 532, which are the August highs. On the downside, the rejection of prices above 530 could trigger losses back to the 10 and 40 DMA at 520 before targeting 512.90. Buying pressure remains weak, and indicators point to further marginal upside momentum. The reaffirmation of support could strengthen the outlook for higher prices.

NY 2nd Month Coffee Futures

Prices weakened yesterday as moderate selling pressure triggered a close above the 10 DMA level of 231.90; the market closed at 232.50. The stochastics are falling moderately, and %K/%D are diverging on the downside out of the overbought, signalling a potential change in trend. The MACD is positive and converging, and the growing candle body supports market momentum. On the upside, prices need to break above the current resistance at 240 and then 244.75. Conversely, a break below 10 DMA at 231.90 support level could set the scene for a test of 230. We expect prices to continue to weaken in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened yesterday as they closed below the support at 2228. The stochastics continue to fall as they edge towards the oversold. The MACD diff just converged on the downside, a strong sell pressure. A break below 2215 would confirm the outlook for lower prices and the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 2200 with the tertiary level at 2185. Conversely, the reaffirmation of support above resistance at 2220 would suggest higher prices and a close above 10 DMA at 2262, setting the scene for higher prices towards 2281. Short upper and lower wicks and longer candle body points to growing downside momentum. The indicators point to a further decrease in prices in the near term.

NY 2nd Month Cocoa Futures

NY cocoa weakened yesterday as protracted selling pressure triggered a close on the back foot at 2368. The stochastics are falling, as %K/%D is about to converge on the downside, whereas the MACD diff is positive and growing slightly, painting a mixed picture about the direction of momentum. The full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 40 DMA support level at 2379. This would confirm the trend for falling prices, down to the 2333 level. On the upside, resistance at 2400 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2420. Narrowing support and resistance levels are creating a narrow trading range, but we believe that the prices will edge marginally lower today.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures lost ground yesterday after prices failed above the resistance level of 1884, prompting a close at 1864. The stochastics are converging on the downside, with %K/%D still in the overbought territory, and the MACD diff is positive and converges as futures failed to confirm the outlook of higher prices after failing into the 1870 level. Futures need to close above 1884 resistance and then target 1900 in the long run. On the downside, the long candle suggests an increased appetite for lower prices in the near term. Prices need to close below 1850 before targeting 1816. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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